Renowned trader Peter Brandt recently compared Bitcoin’s current downturn to corresponding shifts in 2016—both pointing towards a possible future bull run. After the 2016 Bitcoin halving, the market value dipped by 27% from a price of $650 to $474 in less than a month. The twist is, it soared to a staggering high of $20,000 in December 2017. Presently, Bitcoin, with its recent plunge under $50,000, mirrors a 26% decrease from its post-halving figure of $64,962, which refers to a similar occasion as per 2016 trends.
Nevertheless, several analysts forecast a potential further decline in the Bitcoin price. As of August 5th, BTC reported a double-digit fall, crunching to $49,221. Yet, the later signs of recovery exhibited with a bounce-back of $56,000 during early trading sessions the next day.
Interestingly, despite alarming for some, the current pattern resonates with the 2019 market surge in the first half followed by a massive fall in the latter, said ITC Crypto founder Benjamin Cowen.
Regarding the massive crypto sell-off, CEO Tim Kravchunovsky of the decentralized telecommunications network Chirp, said, “Macroeconomic factors are in the driving seat.” He also predicted the potential for crypto assets to recover more swiftly than other volatile assets, referencing 2020 when crypto bounced back more rapidly from the pandemic-fueled downfall compared to traditional stock markets. So this current spiral might not be a crypto-specific conundrum, but part of a more significant market cycle.